Conduct A Retirement Plan Beneficiary Designation Check-Up

If you have a qualified retirement plan or Individual Retirement Account ("IRA"), be sure to verify two things:

1. Have you designated the primary and contingent beneficiary or beneficiaries who will receive any remaining accumulation that you don't withdraw during your lifetime?
2. Does that beneficiary designation meet requirements established by your plan administrator or custodian and the IRS?

Many working individuals accumulate substantial assets in their retirement plans, like a 401(k) plan or an Individual Retirement Account, where investments accumulate tax-free until withdrawn. If retirement accumulations are not exhausted during the employee's lifetime, the employee may designate the beneficiary or beneficiaries who receive what remains. If a beneficiary has not been designated, the retirement plan or IRA will have default distribution provisions established by contract and consistent with IRS requirements. Those default provisions vary, but they